Hassan Maishera
TL;DR
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Bitcoin briefly topped the $70k level on Monday as the market recovered from the weekend slump.
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U.S. spot bitcoin ETFs saw $458 million in net inflows on Monday as institutions buy into global instability.
BTC Rallies as Institutions Resume Purchase
The cryptocurrency market opened the new weekly candle bullish as Bitcoin raced to the $70k level after its poor performance over the weekend.
Bitcoin dropped to the $63k level on Saturday as investors reacted to the ongoing tensions in the Middle East.
This conflict began when the United States and Israel teamed up and launched major strikes in Iran, resulting in the death of Ayatollah Ali Khamenei, the Supreme Leader.
Iran responded by attacking US military bases in the region. It also launched attacks on Israel and other key targets, including in Bahrain and Qatar.
However, the leading cryptocurrency rallied to the $70k level on Monday as institutional investors reacted to the crisis.
U.S. spot Bitcoin exchange-traded funds (ETFs) posted sizable net inflows on Monday, as institutional investors view bitcoin's current price level as an attractive entry point despite ongoing global turbulence.\
Data obtained from SoSoValue revealed that spot bitcoin ETFs recorded $458.2 million in net inflows on Monday, led by $263.2 million into BlackRock's IBIT. Seven other funds, including those from Fidelity and Grayscale, recorded net inflows, while no funds experienced outflows on Monday.
While speaking with The Block, Nick Ruck, director of LVRG Research, stated that,
"The positive spot bitcoin ETF inflows mark a turning point as major allocators appear to view current price levels as an attractive entry point amid bitcoin's recent correction and stabilization."
This inflow comes after spot Bitcoin ETFs recorded substantial outflows amid increased volatility earlier this year. In January and February combined, the ETFs witnessed over $1.8 billion in net outflows.
However, the situation changed as the ETFs recorded a weekly inflow of $787 million last week, ending five consecutive weeks of negative flows. The inflow yesterday shows that institutions are still increasing their exposure to Bitcoin.
Andri Fauzan Adziima, research lead at Bitrue, also stated that institutions bought into global uncertainty because they view bitcoin as a maturing diversifier and hedge.
Bitcoin has retraced below $68k but remains up by nearly 3% in the last 24 hours.
